DALLAS, Oct. 18 /PRNewswire-FirstCall/ -- Carreker Corporation , a leading provider of payments technology and consulting solutions for the financial services industry, announced today the release of a new Integrated Cash Optimization Module (iCom(TM)) to help banks manage vaults and comply with Federal Reserve cash re-circulation policies.
The new module, called iCom Vault and Network Optimization, is being implemented by a large U.S. bank in conjunction with its enterprise deployment of iCom to branches and ATMs. The bank expects iCom to drive enterprise cash optimization through the balancing of cash and transportation costs and Federal Reserve cross-shipping penalties. In addition, iCom will assist the organization in achieving cash ordering efficiencies.
In March 2006, the Federal Reserve Board announced policy changes intended to reduce the use of Federal Reserve Bank cash-processing services by providing incentives for depository institutions to re-circulate currency within their internal and external cash vaults. In 2007, the Federal Reserve will begin assessing cross-shipping penalties on banks that order and ship currency in the same denomination within a five-business-day period. The Federal Reserve estimates the policy changes will affect approximately 150 U.S. depository institutions. To minimize these penalties without significant increase in currency inventories or transportation costs, banks will need to explore new solutions and processes within vault networks.
iCom Vault and Network Optimization module, which is fully integrated within Carreker's enterprise iCom suite, optimizes the bank's cash supply chain by factoring in the cost of cash, the cost of cash transportation, and enterprise efficiency. Carreker originally developed the Vault and Network Optimization module for a client in Australia and has since enhanced it to accommodate Federal Reserve and U.S. market requirements.
Brian Evetts, executive vice president and managing director, Cash & Logistics, Carreker Corporation, said, "Even for banks that have already taken steps to optimize cash in siloed channels or across the enterprise, higher interest rates along with the Federal Reserve's re-circulation policy have raised the stakes higher. These contributing factors help create a solid business case for a solution that can optimize cash holdings across ATMs, branches, vaults, and the entire network. We estimate that for many banks the business case can amount to millions of dollars a year in annual savings."
Web-based and scalable for institutions of any size, iCom allows cash supply chain data and tools to be securely accessed, managed, and shared from any desktop at any time and from any location, including third party vendors such as cash transporters. iCom is currently used by more than 70 institutions around the world and typically reduces excess cash inventories by 20 to 40 percent.
Evetts points out that the Federal Reserve is taking a similar approach to central banks in many countries which have been even more aggressive than the Federal Reserve in reducing their subsidies of commercial banks' cash operations.
J. D. (Denny) Carreker, chairman and chief executive of Carreker Corporation said, "This new module is a significant enhancement that validates iCom as a market-leading solution at a time when regulatory change is driving demand, and it solidifies our advantageous position as we work with financial institutions to address their cash and logistics challenges."
About Carreker Corporation
Carreker Corporation improves earnings for financial institutions around the world. The Company's integrated consulting and software solutions are designed to increase clients' revenues and reduce their expenses, while improving security and increasing the value of their customer relationships. Carreker provides products and services to more than 250 clients in the United States, Canada, the United Kingdom, Ireland, continental Europe, Australia, New Zealand, South Africa, South America, Mexico, and the Caribbean. Clients include the full range of community, regional and large banks, among them more than 75 of the largest 100 banks in the United States. Headquartered in Dallas, Texas since 1978, Carreker Corporation has offices in London and Sydney. For more information, visit http://www.carreker.com/ .
About Carreker's Cash & Logistics
Carreker's Cash & Logistics is part of the company's Global Payments Technologies division. The Company's Cash & Logistics solutions help financial institutions and other organizations around the globe: improve cash optimization from an enterprise perspective (ATMs, vaults, branches); drive new efficiencies and reduce transportation spending; track all assets (physical or otherwise) throughout the enterprise; react to new regulatory policies that impact operations; and manage their ATM channel through comprehensive ATM monitoring, estate management and profitability. Carreker's advanced software applications reside on an integrated, web-based architecture that facilitates the sharing of common data elements and straight through processing. Complemented by thought leadership consulting, these end-to-end solutions maximize efficiency, minimize risk and reduce expenses throughout vault, branch, ATM, proof, mailroom and lockbox operations.
